File No. 5747/45–46.

Chargé Weitzel to the Secretary of State.

No. 339.]

Sir: I have the honor to advise that Mr. Everett C. Bumpus, of Massachusetts, and Hon. Edwin Denby, of Michigan, the United States commissioners plenipotentiary, and Dr. Gil Ponce J. and Señor Julio J. Fábrega, representing the Republic of Panama, composing the joint commission for the assessment of damages to lands taken by the Isthmian Canal Commission, formally delivered to the secretary of foreign affairs of Panama on the 8th instant the award made by the said tribunal under Articles VI and XV of the treaty of November 18, 1903, between the United States and Panama and [Page 675] also the decision of the umpire, Mr. Denby, on the findings of the joint commission of 1907. For the use of the files I am sending herewith the text of the decision as published in the Canal Record of August 12, 1908.

It may not be amiss to state that the final result reached in these long pending claims has made a good impression both on the Panama people and the Americans resident here and is very favorably commented on as an evidence of the generous justice of the American Government.

Messrs. Bumpus and Denby have been highly complimented for their tact, judicial discretion and broadmindedness. They returned to the United States on the 10th instant.

With assurances of the greatest esteem, I am, etc.,

George T. Weitzel.

[Inclosure.]

To the Hon. Elihu Root, Secretary of State of the United States, and Horacio F. Alfaro, Secretary of State of the Republic of Panama:

The joint commissioners, appointed under the provisions of Articles VI and XV of the treaty between the United States of America and the Republic of Panama relating to damages caused by the construction and maintenance of the ship canal across the Isthmus of Panama to connect the Atlantic and Pacific Oceans and dated November 18, 1903, have the honor to report that, under the authority vested in them by their respective Governments, they met in the city of Panama on June 8, 1908, and proceeded to qualify for such office by taking the proper oath before the clerk of the Supreme Court of the Canal Zone.

They thereupon organized the commission provided for by the treaty, elected Hon. Edwin Denby chairman of the same, established rules of procedure, and caused the parties in interest in the cases brought on for hearing before the commission to be lawfully notified, so that they might appear before the same at a certain time and place for the hearing and determination of such causes.

The United States appeared by its attorney, who participated in the proceedings. Some of the claimants appeared by counsel; others appeared per se. The United States attorney also brought to the attention of the commission the fact that certain lands would be appropriated in the building of such canal, the title to which was unknown.

In the latter causes, in order that every opportunity might be given to any party to appear and claim title and damages concerning the same, the commission caused notice to be published in the Star and Herald, a paper published in the city of Panama, giving general notice of the time and place when such causes would be heard. All the causes heard and determined are set forth in the list embodied in this report.

Many questions were raised by the attorney for the United States in some of the cases in reference to the title or interest, if any, which the claimants therein had in the estates appropriated by the United States in the premises. The commission carefully considered and determined all such questions, and, in such cases where damages were subsequently assessed, have taken this question of title into consideration in passing upon the extent of damges to be allowed. It was difficult to determine and not always possible to find, in the complications which arise in applying the law relating to titles in this country, whether a claimant might or might not have an absolute title in the estate affected by reason of any alleged defect in his title, and, as far as it appeared, his possession of the premises would have been permanent for all practical purposes. It seems to the commission, therefore, that such claimants have the right to be treated as “landholder” under the provision of Clause VI of the treaty, and damages assessed accordingly.

[Page 676]

Having disposed of the question of title, the commission heard all the evidence presented bearing upon the fair value of the property appropriated by the United States (to which section 6 of the treaty applies) and any damage arising from the same to the property of the claimants. They especially considered as elements of such valuaton the extent and character of the property so affected, its location, for what it was adapted or could be adapted within a reasonable time; these, as well as other pertinent considerations, were taken into account, and formed the basis upon which the damages have been assessed. The commission did not consider the effect the building of the canal would have upon the value of such estates.

Following is a list of cases so determined and the amount of damages:

Estates. Hectares taken by the United States. Claimants. Damages awarded.
Cardenas 126.0 Hurtado family represented by Narciso Garay. $10,000
Penas Blancas en Medio 218.5 Louisa Cerezo and heirs of Aniceto Cerezo. 4,000
Juan Grande (1) Luz Espinosa 250
El and La Pihiva 406.0 Josefina Jiron and Angilica Jiron 20,000
Tabernilla 183.5 Jean Gris and Ramon M. Valdez 4,500
Bailomonos 102.0 Heirs of Francisco Ardilla, heirs of Remigio, Dutari Correa, Alfaro Hermanos, heirs of Carlos Icaza Arosemena, damages for whole estate. 2,000
Calle Bruja 248.0 Unknown 2,480
Palo Horqueta and Matias 576.0 do 5,760
Barro Colorado and Palenquilla 162.5 do 1,625
Palenquilla and Frijol Grande 190.0 do 1,900
Barro Colorado and Frijol Grande 72.5 do 725
Santa Cruz 74.0 do 740
Hacienda Andrade Antonio Andrade 90,000

As part of the damages caused by the various claimants represented by Messrs. Teran and Hinckley, we allow the sum of $481 gold as costs expended in behalf of the said claimants, same to be paid by the Government of the United States to Dr. Oscar Teran.

Interest also is to be paid upon the said awards from the date of this report at the rate of 6 per cent per annum until the same shall be paid or tendered by the Government of the United States. In so far as the cases involving unknown claimants are concerned we direct that the Government of the United States pay into the Supreme Court of the Canal Zone, or any other court having competent jurisdiction, upon the request of any party claiming to have an interest in any of such awards, the amount of the sum awarded therein.

The United States requested that the damages should be awarded by the hectare, claiming that as to some of the estates affected an accurate survey had not been obtained of the amount to be appropriated and only an estimation of the same could be given. The commission is, however, of the opinion that it should follow the ordinary rule of allowing damages in full and that any other course might create future confusion, and perhaps controversies, in reference to the amount and character of the property appropriated. It is also of the opinion that the variation between the amount of area estimated and that which might be determined upon a survey is not of substantial moment, and, if in any case such happens to be the fact, it could have been cured by a proper prior survey of the same.

The claim set up by Ernesto Arosemena for damages arising from the expropriation of the estate of Mamei y Culo Seco was withdrawn.

In the cases of Penas Blancas en Medio and Bailomonos, damages were claimed on account of the fact that the Panama Railroad Co. had issued passes over its railroad for the benefit of the landowners or landholders in consideration of being given a right of way over the estates affected. We have not considered such claims in estimating the damages, but reserved to the parties any rights they may have to enforce such claims in the premises.

In the matter of the claim of Antonio Andrade, wherein the Government objected to certain elements of damages to be considered, we have overruled [Page 677] the objection and have assessed the same upon the principle that he is to be allowed the amount which, as landholder, his property will be affected by the action of the United States in taking same for canal purposes.

In submtting this report, it may not be deemed amiss to congratulate all parties concerned that these complicated and difficult questions have been conclusively determined by the unanimous action of the commission and the rights of all in interest, as we believe, fully and amply protected. It is also proper to add that we have been greatly aided in coming to determination by the zeal and ability displayed by counsel of the United States Government, as well as by counsel who represented some of the claimants.

  • Edwin Denby, Chairman,
  • Everett C. Bumpus,
    Commissioners on behalf of the Government of the United States.
  • Gil Ponce J..,
  • Julio J. Frabega,
    Commissioners on behalf of the Government of the Republic of Panama.

expropriation proceedings.

Cases determined: Juan Diaz Cabellero, containing 83,618 hectares; Gavilan and Gavilancito, containing 17 hectares; San Lazaro, containing 1 hectare.

findings of edwin denby, umpire.

The question of title does not arise in any of these cases, as the titles of claimants are undisputed. Claimants challenge the right of the Government of the United States to abandon a portion of a tract once noticed for expropriation and concerning which a trial has been had before commissioners, but no agreement reached.

I find that the United States has the right to abandon before final judgment, but must give fair compensation to owners for occupation, actual or presumed, of the land and pay any incidental damages accruing therefrom.

I find the United States is liable in damages as follows: To Mr. Francis Schuber for the occupation and use for four years of the property known as Corozal, situatd on the estate of Juan Diaz Cabellero, for the damages done by the occupation and subsequent abandonment of 75 hectares, more or less, of the said estate, and for the value of 83,816 hectares of land now expropriated, $45,000 gold, with interest at the rate of 6 per cent per annum from the date of this report.

To Maria Concepcion, Sosa, for the expropriation of 17 hectares of the estate known as Gavilan and Gavilancito, $15,000 gold, with interest at the rate of 6 per cent per annum from the date of this report.

To Mr. Gabriel Duque, for the occupation for one year of 11 hectares of the estate known as San Lazaro and subsequent abandonment of the same, and for the expropriation of 1 hectare of the said estate, $1,000 gold, with interest at the rate of 6 per cent per annum from the date of this report.

Edwin Denby, Umpire.
  1. Undivided one-fourth of 42 hectares.